• Comprehensive Inventory Loss Tracking: Empower stakeholders to record detailed Inventory Loss events with precision, including product specifics, lots/serial numbers, and quantities, ensuring granular visibility into every inventory loss. 
• Evidence Collection: Enforce accountability by photo evidence for specific Inventory Loss reasons (like Handling Errors or Spoilage), ensuring verifiable proof is captured before valuable stock is written off.
• Automated & Tiered Approval Workflows: Streamline operations with configurable cost thresholds that automatically approve low-value requests to save time, while routing high-value losses for mandatory manager review to maintain strict control. 
• Seamless Inventory & Accounting Integration: Automatically trigger adjustments and financial journal entries immediately upon posting, ensuring that inventory levels and financial statements reflect real-time Inventory Loss without manual double-entry.
• Customizable Reason Management: Define business-specific Inventory Loss reasons with specific behavioural flags, enabling precise categorization and deeper root-cause analysis of inventory shrink.
• Insightful Reporting & Analytics: Generate professional PDF reports and utilize dynamic pivot views to analyse Inventory Loss trends by product, responsible employee, or reason, empowering data-driven decisions to minimize future losses. 

To install the Odoo Operational Inventory Loss Management, follow the steps below:

• Copy or upload the Odoo Operational Inventory Loss Management  module into your Odoo addons directory.
• Go to the Apps menu in Odoo.
• Click Update Apps List.
• Search for Odoo Operational Inventory Loss Management.
• Locate the module in the results and click Install. 

• Go to Inventory Loss Management → Configuration → Inventory Loss Reasons.
• Create Inventory Loss reasons such as “Spoilage” or “Broken”.
• Enter the code and category for each reason.
• Enable Photo Required if photo evidence should be mandatory for that reason.
• Enable Is Deductible if the Inventory Loss cost should be deducted from the deductible account or tracked separately. 

• Go to Inventory Loss Management → Configuration → Settings.
• Set the Auto-Approval Threshold Amount.
• Any request with a total cost below this amount will be automatically approved and skip the manual approval step.
• Select a Deductible Account, which will be used for Inventory Loss reasons marked as deductible 

• Navigate to Inventory Loss Management → Operations → Inventory Loss Requests.
• Click New to create a request.
• Enter the Source Location (where the stock is currently stored).
• Enter the Scrap Location (where the stock will be moved as Inventory loss).

• Click Add a line in the Detail Lines tab.
• Select the Product and enter the Quantity.
• Units will be shown if Units of Measure & Packagings is checked in Inventory settings.
• Choose a Reason for the Inventory Loss.
• Select a Lot/Serial Number, if applicable.
• If the selected reason requires a photo, attach it in the corresponding line form.
• Click Save. The request will be saved in Draft status. 

• Submit: Click the Submit button.
  •  Scenario A (Low Value): If the total cost is below the configured threshold, the request is automatically approved.
  • Scenario B (High Value): If the total cost exceeds the threshold, the request status changes to Pending Approval.
• Review (Manager/Approver):
  • Navigate to Inventory Loss Management → Operations → To Approve. 
  • Open the pending request.
  • The Approver has permission to delete a product line but does not have permission to edit the product line details 
  • Click Approve to proceed 
    

• • Once Approved, click Validate to make updates in inventory/accounting 

• • Reject: Click Reject. A popup will appear asking for the rejection reason. Once confirmed, the request moves to the Rejected state and is locked.

• • Inventory Loss Requests allow you to record and manage product losses in POS and Manufacturing due to damage, expiry, or production issues.
  • Navigate to Point of Sale → Orders → Inventory Loss Requests. Only POS-related Inventory loss requests are displayed here, and you can select the respective Shop.
  • Navigate to Manufacturing → Operations → Inventory Loss Requests to manage manufacturing-related Inventory loss requests. 

Once a request reaches the Posted state:

• Inventory Updated: Stock is deducted from the Source Location. 

• Accounting Updated: Corresponding financial journal entries are generated.
  

• Traceability: Smart buttons appear at the top right of the form, allowing you to view the related Stock Moves, Scrap Records, and Journal Entries. 

• Inventory Loss Request:

Open a specific Inventory loss request and click Print (or use the Print menu) → Inventory Loss Request to download a structured PDF copy.

• Inventory Loss Summary:

In the main list view, select multiple Inventory loss records using the checkboxes. Then click Print → Inventory Loss Summary to generate a consolidated report for the selected records. 

• Inventory Loss Cost Trends:

View a line chart of Inventory loss costs over time to identify seasonal spikes or recurring patterns. You can switch to Pivot View to generate a spreadsheet-style report for Excel export. 

• Inventory Loss by Reason:

Access a visual breakdown (Pie or Bar Chart) showing which reasons (e.g., “Spoilage”, “Handling Error”) contribute most to wastage. 

• Product Inventory Loss Analysis

The Inventory Loss Management module includes three primary security groups to control access and workflow:

• User: Create Inventory loss records and view their own entries.
• Approver: Reviews and decides on all Inventory loss requests.
• Manager: Full control over settings and every records. 

• Compatible with Odoo Community and Enterprise Editions v19.0 

• Version 1.0.0 – March 2026
  •  Initial release.